39 SOCIAL IMPACT INCLUSION, DIVERSITY & EQUITY EQUALITY OF OPPORTUNITY At The Estée Lauder Companies, we believe all genders should have equal access to opportunity. As a company comprised of 82% women, we have pledged to achieve gender pay equity globally by 2023; increase representation of women from underrepresented groups across our regions and affiliates; and increase representation for Black women at all levels in the United States by 2025. We have continued our progress toward our pay equity goals. Building on our prior global workforce study, we re-engaged the labor economics consulting firm that supported that study to refresh our pay equity analysis focusing on our non-Point-of-Sale population globally based on gender, and for our U.S. workforce, based on race. As part of this study, we conducted an in-depth statistical analysis of employee compensation, based on like-for-like jobs, considering factors such as grade, experience, time in role, location, and performance, among others. To support our commitment to gender and racial equity at work, we have made rigorous and objective pay equity assessments a core component of our regular compensation review. The results show that we are making progress. The modest, statistically significant pay gap previously reported for women has been narrowed. Globally, it is expected that women will earn 98.7% in fiscal 2022 of what comparably positioned men earn (as compared to 98.2% in fiscal 2021). We are strongly committed to closing the remaining gap for women. In the United States, we continue to have statistical parity of pay between White and both Black and LatinX employees, as well as for non-White employees collectively. We believe that gender and racial pay parity are important steps towards achieving full equity in all aspects of employment at The Estée Lauder Companies. We have made pay adjustments in fiscal 2022 and are refining our strategy to close any existing pay gaps in a way that addresses identified sources of pay differences and protects against their re-emergence over time. We are analyzing the root causes of pay differentials and are formulating recommendations with respect to further enhancing our career and talent development programs to ensure equity in career opportunities. Achieving equity requires a holistic approach; one that further invests in our diverse talent through career advancement, development programs, hiring practices, enhanced talent management, and flexible work principles to ensure sustainable progress over the long term. Read more about these programs in the Employee Engagement and Learning and Development sections on pages 24 and 28.